Govt cuts fuel rates by Rs 2.50; asks states to follow suit

NEW DELHI: The Centre on Thursday announced a cut of Rs 2.50 in line with litre on petrol and diesel costs with fast effect.

Addressing a press convention, finance minister Arun Jaitley stated the Union govt is effecting a Rs 1.50 cut on excise accountability on petrol and diesel. Furthermore, the federal government has requested oil advertising firms (OMCs) to take in a deduction of Re 1 in line with litre on both the petro merchandise, he stated.

The decreased costs shall be effective from midnight.

Soon after, the state governments of Gujarat and Maharashtra announced a further Rs 2.50 cut in fuel costs.

Also read: Gujarat, Maharashtra announce further reduction in fuel costs

Jaitley also stated that the central govt shall be writing to all state governments to cut back petrol and diesel costs by a further Rs 2.50 by slicing sales tax or price added tax (VAT).

Also read: Markets lead to massacre as Sensex loses 806 points

The impact of excise accountability cut to the Centre shall be Rs 10,500 crore, Jaitley stated.

Taxes on petrol and diesel account for more than a third of retail fuel costs and is one of the biggest sources of income for the federal government.

Read also: Galloping costs of petrol and diesel must spur reform

Earlier within the day, the finance minister held the most important assembly, attended by the petroleum minister and other key officials.

The finance minister aimed to appease considerations at the financial front by bringing up that all of the home indicators excluding for present account deficit (CAD) are sturdy, strong and inspiring.

Jaitley stated the surge in petrol price is because of the Brent crude oil touching four-year top of $86 a barrel on Wednesday.

Shares in Indian Oil Corp, the country’s biggest oil refiner, dropped 11.four in line with cent. Hindustan Petroleum Corp closed down 13.5 in line with cent whilst Bharat Petroleum Corp Ltd fell 12.four in line with cent. Reliance Industries shares closed down 6.9 in line with cent, their biggest single-day fall since August 24, 2015.

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Govt cuts fuel rates by Rs 2.50; asks states to follow suit Govt cuts fuel rates by Rs 2.50; asks states to follow suit Reviewed by kailash soni on October 05, 2018 Rating: 5
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